Travelocity buys Site59.com

BambiFrancisco

SAN FRANCISCO (CBS.MW) -- Travelocity announced Tuesday that it's buying Site59.com for $43 million in cash.

Site59.com sells last-minute airline, hotel and rental tickets. Travelocity
TVLY, +0.61%
said the acquisition will open up relationships with major hotel chains, giving the online travel site further inventory to sell.

Travelocity said its ownership of Site59.com will not change its relationship with Hotel Reservations Network. Travelocity said it will begin offering the hotel rooms from Site59.com in the summer 2002.

Site59 received it first seed round from The Boston Consulting Group and launched in May 2000. In total, it's raised $17.5 million and is backed by IFormation, a partnership between The Boston Consulting Group, Goldman Sachs and General Atlantic Partners.

Last month, Site59, with 60-plus employees, sold a total of $4 million worth of tickets.

Travelocity on Monday said it would begin charging customers buying United Airlines
UAL, +1.35%
tickets a fee of $10. The announcement came just over one week after Delta Air Lines
DAL, +1.86%
kicked off an industry-wide move to cut travel-agent commission fees.

Intraday Data provided by SIX Financial Information and subject to terms of use. Historical and current end-of-day data provided by SIX Financial Information. All quotes are in local exchange time. Real-time last sale data for U.S. stock quotes reflect trades reported through Nasdaq only. Intraday data delayed at least 15 minutes or per exchange requirements.